Dear Law for Fun members (and non group members who may be interested).
In these troubled times many of us have holidays and such like booked which we cannot take because of COVID.
Those of you who attended my session on contract will recall that I covered frustrated contracts. These are prime examples of frustrated contracts ( ie they cannot be performed for reasons beyond the control of each party). In such circumstances, subject to the deduction of reasonable expenses and payments, (the consideration) should be refunded.
Further indemnity can be found in section 75 of the Consumer Credit Act 1974 ( if you paid by credit card; you should always pay by credit card).
What do you do if the deposit has been paid and the full payment is due?
Each case turns on its own merits ( and I cannot of course advise on individual cases), however conventional wisdom is that you should pay and claim back if the holiday is cancelled. This may appear counter intuitive but if you don’t pay you will be in breach of contract and you may lose your deposit. Of course you must make your own individual decision. If the deposit is modest in comparison to the full payment you may wish to lose it rather than going through the stress of waiting for the refund.
Set out below is a link to the Radio 4 “You and Yours” the Consumer programme in which this topic was discussed.
For the avoidance of doubt none of the above is formal legal advice ( I am retired)!!!
If you are unclear you must take your own legal advice
I have also set out below a link to another video from Leona Deakin an Organisational Psychologist I used to work with. I hope you find it useful.
Stay alert, stay safe! – John Dilworth